Tesla sold 110,000 fewer cars, but its market value soared by 340 billion yuan.

Deliveries have declined for two consecutive quarters, sales are under pressure, but the stock price has soared?

On July 2nd, Eastern Time, Tesla released its vehicle production and delivery data for the second quarter of 2025. Although production rebounded, deliveries still underperformed. What's even more puzzling is that Tesla's market value skyrocketed by over 340 billion yuan overnight.

In the second quarter, Tesla produced 410,200 vehicles, a 13.13% increase from the previous quarter. However, deliveries were only 384,100, a 13.5% year-on-year decrease. Deliveries of its main models, the Model 3 and Model Y, also declined by 12% year-on-year.

An even more striking figure is that in the first half of 2025, Tesla delivered a total of 720,800 vehicles globally, 110,000 fewer than the 831,000 delivered in the same period last year. According to data released by the European Automobile Manufacturers Association last week, Tesla's vehicle sales in the EU also dropped by 45% from January to May this year.

Looking back at the first quarter, Tesla already showed signs of weakness - deliveries were only 336,700, a 32% quarter-on-quarter drop, hitting the lowest level since the fourth quarter of 2022.

Against the backdrop of falling sales, Tesla chose to raise prices. On July 1st, the long-range version of the Model 3 and the refreshed long-range version of the Model Y were officially upgraded, with both range and acceleration performance improved. Specifically, the Model 3's range increased from 713km to 753km, and its 0-100km/h acceleration improved from 4.4 seconds to 3.8 seconds. Its price rose by 10,000 yuan to 285,500 yuan. The Model Y's range increased to 750km, but its price remained unchanged.

What's even more puzzling is that the US stock market "bought into" this data. As of the close on Wednesday, Eastern Time, Tesla's stock price soared nearly 5%, and its market value skyrocketed by $48.1 billion, equivalent to about 345 billion yuan. Some analysts said that although the overall data is still under pressure year-on-year, the delivery results were better than the market's most pessimistic expectations, which relieved investors.

Previously, JPMorgan Chase warned in a bearish report that Tesla's deliveries in the second quarter might continue to be weak. "According to our survey, the trend of weak demand for Tesla vehicles in the first quarter seems to have continued into the second quarter." Currently, it is estimated that Tesla's deliveries in the second quarter will be only 360,000, lower than the previous estimate of 395,000 (a downward adjustment of about 9%) and far below the market consensus estimate of 392,000. This means that Tesla's deliveries in the second quarter will decline by 19% year-on-year.

Some investors are worried that Elon Musk's increasingly radical political stance may bring more uncertainties to Tesla's future. Tesla is facing "dual-line" pressure.

However, on the other side of the new energy vehicle market, China presents a completely different and bustling scene.

Entering July, major new energy vehicle manufacturers have successively released their "report cards" for June and the first half of the year. Overall, the performance of most new energy vehicle manufacturers has increased significantly year-on-year. Some new car - making forces have set new delivery records. BYD's sales in the first half of the year have exceeded 2.14 million. The performance of a group of established automakers and "second - generation new energy" brands has also continued to improve...

In the first half of the year, the rankings among new car - making forces have quietly changed. The biggest "dark horse" is undoubtedly Leapmotor, which topped the sales list of new car - making forces with 221,700 deliveries, surpassing Li Auto. Leapmotor confidently said, "We have ranked first for four consecutive months."

Looking at the single - month data for June, Leapmotor delivered nearly 50,000 vehicles, while Li Auto delivered only 36,300. Li Auto also admitted that this year is full of both opportunities and challenges.

Xiaomi's foray into the automotive industry has achieved an initial victory. It has a large number of orders, and the real concern is how to expand production capacity. XPeng Motors has made steady progress, with sales reaching 197,000 in the first half of the year, exceeding last year's total. The completion rate of its annual target has reached 52%.

On one hand, the "established players" are in a difficult situation, while on the other hand, the "domestic new forces" are in the limelight. Who will break through in the second half? Perhaps the market can speak louder than the financial reports.

Images / IT Times   Tesla

This article is from the WeChat official account "IT Times". Author: Jia Tianrong. Republished by 36Kr with permission.